By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Most major Asia stock markets saw modest
gains Tuesday, although the Japanese market slipped amid weakness
for utility firms, and mainland Chinese shares pulled back after
recent gains.
South Korea's Kospi rose 0.1%, Australia's S&P/ASX 200 index
advanced 0.3%, New Zealand's NZX 50 added 0.1% and Singapore's
Straits Times Index rose 0.6%.
Chinese trading saw Hong Kong's Hang Seng Index move marginally
higher, but the Shanghai Composite Index gave up 0.4% after gaining
more than 1% on Monday.
Likewise, Japan's Nikkei Stock Average lost 0.5%, after ending
the previous session with a modest 0.1% gain, and Taiwan's Taiex
fell 0.7%.
"Often, the first few weeks of December are range-bound and
messy," said Shane Oliver, head of investment strategy at AMP
Capital. "But the fact that markets have held up through the [U.S.]
fiscal-cliff negotiations and developments in Europe is a positive
sign for future gains."
Asia's mixed moves came after U.S. stocks edged higher Monday,
with the Dow Jones Industrial Average (DJI) and the S&P 500
index (SPX) hitting their highest levels since the presidential
election in early November.
Wall Street's gains occurred amid signs of progress in talks
over the fiscal cliff of billions of dollars in upcoming U.S. tax
hikes and spending cuts.
Weekend statements on the negotiations released by the U.S.
president and the speaker of the House were identical, "which we
interpret as a positive sign that the two sides are closer to an
agreement" said Yelena Shulyatyeva, economist at BNP Paribas.
New York commodity markets saw some strong performances for
metal futures on Monday, with copper reaching a seven-week high,
while iron-ore prices showed some strength on the global spot
market.
Hong-Kong listed commodity-related firms saw some buying
interest, with Western Australian iron-ore-project owner Citic
Pacific Ltd. (CTPCY) up 2.2%.
On the downside in Hong Kong, Cathay Pacific Airways Ltd.
(CPCAY) lost 1% after unions sanctioned industrial action over the
Christmas holiday period if the airline won't reopen talks with
flight attendants over wages.
Property stocks were among the worst performers Tuesday in
Shanghai, with Gemdale Corp. down 1.2%, and Poly Real Estate Group
Co. lower by 0.8%.
Over in Japan, the volatile utility sector dragged on the
market, with Tokyo Electric Power Co. (9501.TO) down 2.9%, Chubu
Electric Power Co. (9502.TO) dropping 6.4%, and Kansai Electric
Power Co. tumbling 7.5%.
Helping sour sentiment toward the sector, the Japanese
government concluded late Monday that the Tsuruga nuclear power
station operated by the unlisted Japan Atomic Power Co. -- in which
many of the major utilities hold ownership stakes -- is likely
sitting on an active fault and may be decommissioned, according to
a Nikkei news report.
Among the Tokyo gainers, meanwhile, Renesas Electronics Corp.
(RNECY) rose 3.3% after the firm confirmed late Monday that it will
receive up to 200 billion yen ($2.43 billion) of capital in a deal
that will see a government-backed fund emerge with a near-70% stake
in the loss-making technology firm.
Sharp Corp. (SHCAF) gained 2% after a separate Nikkei report
that Mitsubishi UFJ Trust and Banking Corp. and Mizuho Trust &
Banking Co. will lend the firm ¥20 billion, while Resona Bank
is also mulling a ¥20 billion loan.
The lenders' parent firms -- Mitsubishi UFJ Financial Group Inc.
(MTU) and Resona Holdings Inc. (8308.TO) -- saw their shares fall
1.1% and 1.2%, respectively.
South Korean trading saw auto giant Hyundai Motor Co. (HYMTF)
advance 0.7% but chip heavyweight Samsung Electronics Co. (SSNLF)
dropped 1.1% to retreat from an all-time high hit Monday.
Australian shares moved back up to a level not seen since mid
October, with miners fuelling the gains after Monday's metal moves
in New York.
Iron-ore extractor Fortescue Metals Group Ltd. (FSUMY) climbed
3.7%, diversified mining group BHP Billiton Ltd. (BHP) rose 1.3%,
and rival Rio Tinto Ltd. (RIO) advanced 0.9%.
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